Private brands taking over vital shelf space

Store brands are once again making the mainstream news at the expense of name brand products.

According to a Yahoo! Finance video, big food companies, such as Kraft Heinz, are reporting lower and lower sales thanks to grocers who are accommodating more space within their stores for their private label products. For example, Cincinnati-based The Kroger Co. has almost doubled the number of private brand items it stocks over the past 15 years. The sales of private brand products alone made up $22 billion in 2018, approximately 18% of the company’s total sales.

With grocers creating more space on the shelves for their private brand products, big-name companies are losing vital spots on the shelves that are actually important when executing a consumer's path to purchase, according to Yahoo! Finances Brian Cheung.

“Marketing firms will spend so much money just trying to increase the visibility of their brands, especially with new products. So, if they (consumers) can’t see it, it doesn’t matter if it's cheaper. People won’t notice,” said Cheung in the video.

To watch the Yahoo! Finance video, click here.